Market Health Metric

Definition ∞ A Market Health Metric is any quantitative measure or indicator employed to assess the overall condition, stability, and growth prospects of the cryptocurrency market or a specific digital asset. These metrics provide data-driven insights into various aspects of market dynamics. They help in evaluating the fundamental robustness of the market.
Context ∞ Market health metrics, such as trading volume, network activity, or investor sentiment indices, assist analysts in evaluating the sustainability of price trends and identifying potential risks or opportunities. Regular assessment of these metrics is vital for understanding the broader market environment and making informed decisions. They contribute to a comprehensive market analysis.